Bank of Japan Governor Ueda: The timing of interest rate hikes depends on the data.

During his talk on Monday morning, Bank of Japan Governor Kazuo Ueda stated that any future interest rate hikes will depend on data, indicating that it will rely on the pace of economic growth, consumer price inflation data, as well as the financial conditions in the country.

Some of the key statements made by Ueda this morning included:

• The wage and benign inflation cycle has gradually strengthened over the past year and has shown significant improvement.
• The Bank of Japan plans to gradually increase interest rates in line with continued economic improvement.
• The timing of our interest rate hikes depends on the economy and inflation data.
• The momentum of wage increases is key to achieving the inflation target sustainably.
• The upcoming spring wage negotiations will play a crucial role in the Bank of Japan's decision regarding interest rates.
• We must remain vigilant about the various risks in determining the timing of adjustments to monetary support.
• I hope that wages will rise and price inflation will increase at a balanced pace in 2025.